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Dreaming of a new home? The decision to purchase a spec home versus building a custom home can be a daunting one. However, we've compiled a guide to help you discern between the two and decide which type of home is best for you. Here, we'll explain the difference between a spec home and a custom home, the pros and cons of each, and how to decide what's right for you.
sPEC HOME VERSUS CUSTOM HOME
What's the difference between a spec home and a custom home, and does that difference even matter? We'll start this answer by defining what a spec home is.
Spec Home
A spec home, short for “speculative home,” is a house built by a builder with the assumption that it will sell upon completion. These homes are constructed based on pre-determined floor plans and often cater to a broad market. Here are some key characteristics of spec homes:
- Pre-Determined Floor Plan: Spec homes are built from a chosen, pre-determined floor plan. This means the builder selects the layout and design elements before a buyer is involved.
- Built to Sell: Since these homes are built in anticipation of finding a buyer, they are ideal for the person who wants to move in quickly.
- Limited Customization: Buyers have minimal input on the home's design and features. What you see is what you get, with little to no room for personalization.
Spec home builders build spec homes for people who need less input in the customization of their houses and want fewer decisions and quick timelines. These homes are ideal for people not yet ready for custom homes. Spec home construction allows buyers to add a small amount of input (choosing specific choices laid out for them).
Spec Home Builders
Spec home builders, or spec builders, focus on constructing homes with the goal of selling them upon completion. Their process involves selecting popular and marketable floor plans, materials, and finishes that appeal to a broad audience. These builders typically have a portfolio of homes in various stages of construction, allowing potential buyers to select a home that suits their needs with a relatively short waiting time.
Some builders build both spec homes and custom homes, which allows them to target a broader audience. If you're looking for a custom home, then a spec home isn't for you. However, if you're not quite ready for a custom home, then a spec home may be a great plan for you.
Custom Home Builders
A custom home builder, on the other hand, works directly with homeowners to design and build a home tailored to their specific needs and preferences. A custom home builder takes an idea and spins in into an entire house and lifestyle. The custom home process can seem daunting, but it doesn't have to be. Here are some of the benefits.
- Personalized Design: Custom homes are designed and built to meet your exact specifications, needs, and dreams. This means the homeowner gets to hand-pick every aspect, from the floor plan to the finishes. Our portfolio full of custom homes only scratches the surface of what is possible.
- Greater Flexibility: You have the freedom to incorporate unique features and amenities that suit your needs and lifestyle. Your floor plan can be entirely unique with a custom home builder. No building or living in a house that's not expressly designed for your needs.
- Involvement in the Process: Building a custom home means you get input on every level of your home. Your entire team works closely with you to bring your vision to life.
- Investment in Your Future: With a custom home, you are investing in your future. Because you are choosing every element of your home, and each element is custom to you, the price tag of a custom home is higher than that of a spec home build. However, it is an intentional investment in your future.
Custom Home vs Spec Home: Key Differences
1. Design Flexibility
- Spec Home: Limited to pre-determined floor plans with little room for customization.
- Custom Home: Fully tailored to the homeowner’s specifications, offering complete design flexibility.
2. Cost
- Spec Home: Typically more affordable due to standardized designs and materials.
- Custom Home: More expensive due to personalized features and custom materials.
3. Construction Time
- Spec Home: Generally quicker to complete since the design is pre-determined.
- Custom Home: Longer construction time as it involves detailed planning and bespoke design.
4. Buyer Involvement
- Spec Home: Minimal involvement; buyers choose from existing options.
- Custom Home: High involvement; buyers participate in every stage of the design and build process.
How Long Does It Take to Build a Spec Home?
The construction timeline for a spec home can vary based on the builder and the specific project. On average, it takes about 4 to 6 months to complete a spec home. This shorter timeline is possible because the builder uses a pre-determined floor plan and has streamlined the construction process.
However, since spec homes are built to sell, homebuyers can often shorten this timeline by arriving later in the process. Spec home builders build homes that people want to move into and add more homes to a seemingly perpetually short market.
Once again, the people looking for spec homes need different elements in a home than those looking for a custom home. While timeline of a spec home can be tempting, the beauty in a custom home is that every element is designed for you.
Choosing the Right Option: Spec Homes vs. Custom Homes
Still trying to discern if a spec house versus a custom house is right for you? We've added a few metrics to help you decide if a spec home build or a custom home build, designed around your every need and lifestyle, is worth the investment. Our homeowner's resource can also help you reach this decision.
Customization
If you constantly look at a home, thinking about how it could be better or if a radically different floor plan would suit your family better, a custom home is for you. A custom home creates a haven that is unparalleled in its designed and functional utility for your family. It's more than just colors and what countertops you choose; it's the very design of the house, the placement of the windows, and what door opens to where. If these factors align with your plans for your life, then a custom home is the right choice for your family.
Budget
A custom home requires a broader budget than a spec home. You are spending more because you are investing in more and receiving more. If your budget isn't yet ready for a custom home, then a spec home might be the best choice. But keep your custom home dreams in mind, gain equity, and plan that custom home in the future.
Timeline
Like anything made from scratch, a custom home build takes longer than a spec home build. If you're short on time and just looking for a home to move into, then a spec home will likely be the best choice. But if you have a longer timeline and want to invest resources into a forever home, then a custom home rather than a spec home is an excellent choice for you.
Involvement
While the right custom home builder can guide you to the custom home building process easily, a spec home builder offers you the chance to move into a home, pick between a few limited choices, and have a new home with relatively little involvement. The choice remains yours, and only your preference can dictate whether a spec home build or a custom home build is best for you.
The Right Choice for Your Central New Jersey Home
As with most choices in life, the choice between a custom home builder and a spec home builder in Central New Jersey depends on your specific needs, budget, and timeline. Spec homes offer convenience and affordability, making them an attractive option if you have a shorter timeline and busier schedule. However, if you’re looking for a home that reflects your unique tastes and requirements, a custom home is the best choice. Understanding these differences will help you make an informed decision and ensure that your new home meets all your expectations.
Contact GTG BUILDERS
Ready to begin building your very own custom home? Contact GTG Builders to get started! Our experienced team is here to guide you through the process and turn your dreams into your dream home. Our team can make the custom home process enjoyable every step of the way.
